INTRODUCTION Contributed by: Yoav Harris, John Harris (1940-2023) and Domiana Abboud, Harris & Co Maritime Law Office
the income of the Suez Canal from the shipping trade in financial year 2023–24 fell to USD7.2 bil - lion – 23% less than the previous year’s income of USD9.4 billion. Another challenge the Suez Canal might be fac - ing is climate change, namely the melting of gla - ciers and increasing wildfires. Additionally, Rus - sia and China’s Northern Sea Route – or Polar Silk Road – endeavour is a viable alternative for commercial shipping that offers a shorter sail- ing distance between Europe and Asia of 13,000 kilometres compared to the 21,000-kilometre Suez Canal Route. The Russia-China-backed route has raised concerns in the US, with Pres - ident-elect Trump making remarks even prior to assuming office on the necessity of a US pres - ence in Greenland to ensure national security. FuelEu Regulations Although maritime transport remains the most carbon-efficient mode of transport per ton km, at the same time, ship traffic to and from port in the European Economic Area still accounts for some 11% of all EU carbon dioxide (CO₂) emis - sions from transport and 3–4 % of the EU’s total CO₂ emissions (but see (3) of Regulation (EU) 2023/1805; the “FuelEU Regulations”). Having the objective of increasing the consistent use of renewable and low-carbon fuels and sub - stituting sources of energy in maritime transport across the EU, the FuelEU Regulations came into force on 1 January 2025 in the following manner. According to Article 4, the yearly average green - house gas (GHG) intensity of the energy used on board a ship during a year shall not exceed the limit of 91.16 grams of CO₂ equivalent per MJ. This limit is reduced by 2% from 1 January 2025 and further reduced every five years until a reduction of 80% is reached on 1 January 2050.
The energy used by a vessel is calculated according to a formula in Annex I, which takes into account, for example, the types of fuels delivered to the ship, if the ship used electric - ity at berth and the use of non-biological fuel, which provides the ship with a “reward factor”. Exceeding the above limit will result in a fine, which will be doubled if the violation is repeated in two consecutive years. The FuelEU Regula - tions apply to all ships above 500 gross tonnage that serve the purpose of transporting cargo pas - sengers for commercial purposes, regardless of their flag, with a requirement for registration, a monitoring plan and other forms of supervision under an accredited legal entity known as "the “verifier”. The allocation of liabilities resulting from the FuelEU Regulations between owners and charterers has been implemented by the revised Baltic and International Maritime Council (BIMCO) FuelEU Maritime Clause for Time Char - ter Parties 2024. The FuelEU Regulations are to be viewed together with EU Directive 2003/87, setting a GHG emission allowance – applied from 1 January 2024 – on maritime transpor - tation, and EU Directive 2016/802, limiting the sulphur content of marine fuel used in EU seas and the EU exclusive economic zone to 0.10% from 1 January 2015. The goals and direction of the EU environmental regulations are clear, and ship operators calling at European ports should follow them. Military Use of Autonomous Ships: Development of the Maritime Autonomous Surface Ships (MASS) Code While the technological and legal evolution of autonomous ships in the civil and commercial sectors is offering a glimpse of the future, the use and development of autonomous ships and naval drones in the Ukraine-Russia conflict is reminiscent of past wars – for instance the
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